Tubacex first-quarter sales hit record, outlook positive

Spanish stainless seamless tubemaker Tubacex improved performance in the first quarter, supported by continued growing international market demand, Kallanish learns from the company’s operating report.

The company has maintained its historically high order backlog of €1.65 billion ($1.8 billion). The record order intake in Q1 is mainly attributable to the company’s product mix and cost-cutting efforts over the past few years, which partially offset the current inflationary environment while achieving profitability at all Tubacex plants.

“The beginning of 2023 was driven by a dynamic energy market with significant investment and visibility,” says Tubacex chief executive Jesús Esmorís. “First-quarter results confirm our estimations, reinforcing the company’s position as a multi-energy player in the current energy transition scenario.” The executive expects performance in the next quarters to remain in line with Q1.

Tubacex Q1 sales rose 23.8% on-quarter and 46.9% year-on-year to €232.1 million ($254.5m). This was the best quarterly result ever, the company confirms. The industrial sector represented 44% of the group’s sales in January-March, while 32% were destined for the oil and gas sector. Supplies to new markets, such as aerospace, defence, and the hydraulic and instrumentation sector, had a 17% share, and power-generating industries had 7%.

Asia and the Americas remained Tubacex’s main markets, with a 36% and 31% share in total sales, respectively. These regions were followed by Europe and Africa, with 29% and 4% shares respectively.

Ebitda was €30.5m in Q1, up 21.6% q-o-q and compared to €19m in Q1 2022. This was the best quarterly result in the company’s history.

Todor Kirkov Bulgaria